Suspected $133m EU crypto theft laundered via exchanges, mostly Kraken - Ledger Insights

Blockchain investigator ZachXBT, known for tracing stolen funds, reported the potential $133 million loss over the weekend. He believes the money was withdrawn from several exchange accounts on November 1, quickly swapped, and moved through services designed to obscure its trail. The victim institution has not been named, and ZachXBT's attribution remains unconfirmed.

Ledger Insights traced stablecoin withdrawals linked to the published addresses, revealing that $108 million in USDC moved on November 1-2.

Exchange Response

Kraken stated the incident did not originate on its platform. The exchange is investigating reports that the stolen assets were subsequently moved through their accounts, has restricted those accounts, and is cooperating with law enforcement. Kraken emphasized that no customer accounts were compromised.

the incident did not originate on its platform, that it is investigating reports the assets were subsequently moved through accounts there, that it has restricted those accounts and is working with law enforcement, and that no customer accounts were taken over

Investigation Details

ZachXBT suspects a large Western European financial institution is the victim, with the incident being kept quiet. Blockchain analysis shows all funds ended up in the same few wallets within hours, then converted to ether or privacy coins through instant exchanges.

Thirteen Kraken withdrawal addresses were used sequentially over six hours on November 1, with some receiving $1,000 test payments followed minutes later by full balances typically ranging from $5-10 million. Two more withdrawals occurred the next day after ZachXBT's initial alert. The initial theft method remains unknown as it's not visible on the blockchain.